August V. and Mary E. Klaue - Page 1
















                                 T.C. Memo. 1999-151                                  


                               UNITED STATES TAX COURT                                


                     AUGUST V. AND MARY E. KLAUE, Petitioners v.                      
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket Nos. 13941-97, 20041-97.    Filed May 4, 1999.                  


               Lowell V. Ruen, for petitioners.                                       
               Sandra Veliz, for respondent.                                          


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               PARR, Judge:  In two notices of deficiency, respondent                 
          determined deficiencies in petitioners' Federal income tax for              
          1993 and 1994 in the amounts of $24,336 and $53,822,                        
          respectively.  These cases were consolidated for trial, briefing,           
          and opinion by order of this Court dated February 12, 1998.                 







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